According to the latest data published by the Instituto Nacional de Estadística (INE), rent increases will be limited to 2.08% for leases undergoing revision in April 2025. This figure aligns with the reference index established under Spain's Housing Law, effective from May 25, 2023. This new rate, based on February 2025 data, shows a slight decrease from the previous month's rate of 2.19%, marking a gradual fluctuation around the 2% threshold since the index's inception early this year.

The INE's index is designed to reflect movements in overall inflation, excluding fresh food and energy prices, thereby providing a more stable reference for rental agreements.

With four previous updates published, the index has consistently been just above the 2% mark.

Landlords who opt to implement this increase must formally notify tenants in writing, adhering to the terms specified in their rental contracts.

Rent adjustments occur annually, allowing landlords revisiting rental agreements at this time to apply the maximum permissible increase linked to the index.

Traditionally, many rental agreements in Spain adjusted rental prices based on the Consumer Price Index (CPI).

However, the Housing Law has instituted various measures to contain price increases within the rental market, designating the INE as the authority for determining this reference index to avoid unreasonable hikes driven by inflation.

For contracts signed prior to the Housing Law's enactment, specifically before May 2023, rent adjustments will continue to follow the terms laid out in the original agreements, either referencing the CPI or the Índice General de Coste (IGC), as stipulated.

The Ministry of Housing has developed a tool to assist landlords in calculating the appropriate rent adjustment based on their specific contracts and current rental prices.